[Code of Federal Regulations]

[Title 24, Volume 4]

[Revised as of April 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 24CFR983.205]



[Page 669]

 

                 TITLE 24--HOUSING AND URBAN DEVELOPMENT

 

CHAPTER IX--OFFICE OF ASSISTANT SECRETARY FOR PUBLIC AND INDIAN HOUSING, 

               DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

 

PART 983_PROJECT-BASED VOUCHER (PBV) PROGRAM--Table of Contents

 

             Subpart E_Housing Assistance Payments Contract

 

Sec.  983.205  Term of HAP contract.



    (a) Ten-year initial term. The PHA may enter into a HAP contract 

with an owner for an initial term of up to ten years for each contract 

unit. The length of the term of the HAP contract for any contract unit 

may not be less than one year, nor more than ten years.

    (b) Extension of term. Within one year before expiration, the PHA 

may agree to extend the term of the HAP contract for an additional term 

of up to five years if the PHA determines an extension is appropriate to 

continue providing affordable housing for low-income families. 

Subsequent extensions are subject to the same limitations. Any extension 

of the term must be on the form and subject to the conditions prescribed 

by HUD at the time of the extension.

    (c) Termination by PHA--insufficient funding. (1) The HAP contract 

must provide that the term of the PHA's contractual commitment is 

subject to the availability of sufficient appropriated funding (budget 

authority) as determined by HUD or by the PHA in accordance with HUD 

instructions. For purposes of this section, ``sufficient funding'' means 

the availability of appropriations, and of funding under the ACC from 

such appropriations, to make full payment of housing assistance payments 

payable to the owner for any contract year in accordance with the terms 

of the HAP contract.

    (2) The availability of sufficient funding must be determined by HUD 

or by the PHA in accordance with HUD instructions. If it is determined 

that there may not be sufficient funding to continue housing assistance 

payments for all contract units and for the full term of the HAP 

contract, the PHA has the right to terminate the HAP contract by notice 

to the owner for all or any of the contract units. Such action by the 

PHA shall be implemented in accordance with HUD instructions.

    (d) Termination by owner--reduction below initial rent. The owner 

may terminate the HAP contract, upon notice to the PHA, if the amount of 

the rent to owner for any contract unit, as adjusted in accordance with 

Sec.  983.302, is reduced below the amount of the initial rent to owner 

(rent to owner at the beginning of the HAP contract term). In this case, 

the assisted families residing in the contract units will be offered 

tenant-based voucher assistance.